Russia cuts average daily oil production by 1.6% in mid-April as compared to 2016 level

Russia has cut average daily oil production from 1,527.5 thousand tonnes to 1,502.4 thousand tonnes as of mid-April, as part of the agreement with OPEC on oil production cut, according to the report by the Central Dispatching Department of Fuel Energy Complex (CDU TEK).

In comparison with the level of production in October 2016, which was chosen as the basis level, the production reduced by 1,6%

By the end of March the level of production cut was 1.2% and in late February – 0.8%/

Under the deal with OPEC Russia is to cut production by 2.7% in comparison with the October level or by 300,000 barrels.

Russia’s Energy Ministry said it was not correct to convert the national statistics on oil production into barrels using the single ratio (for example 7.33) In order to get the precise statistics in barrels different ratios should be used for every field, the ministry said.

Almost all Russian oil companies participating in the OPEC agreement have cut production evenly since October.

Only Rosneft company increased oil output (data excluding Bashneft) – by 2.7% against October – from 562.3 to 577.5 thousand tonnes.

At the same time, Bashneft (57.66% of the authorized capital belongs to Rosneft) decreased production by half in comparison with October – from 57.1 to 28.7 thousand tonnes.

By the time of publication of this data, TASS did not have comments from Rosneft on the rate of production reduction.

Earlier Energy Minister Alexander Novak said that Russia should fulfil its full quota on production cut by the end of April. He also informed TASS that by the middle of the month Russia will reach the level of 250,000 barrels.